Great strides have been made to reduce the gaps that exist between the Member States and regions, strengthening the EU Single Market and making sure that the EU continues to invest in human capital and sustainable development. Exploiting the full potential of every region strengthens the competitiveness and resilience of the Union as a whole.
Driving economic growth and employment
Cohesion Policy is an important driver of sustainable development and economic growth. In the long run, it is expected that each euro invested through Cohesion Policy will have tripled, by 2043 which is equivalent to an annual rate of return of around 4%. Thanks to the Policy, it is estimated that 1.3 million additional jobs will be created in the EU by 2027, with a large share in sectors related to the green and digital transitions. Cohesion Policy also ensures that economic development in regions has a positive spillover into the EU Single Market, thanks to trade and investment connections.
By the end of 2022, Cohesion Policy funding between 2014 and 2020 had supported over 4.4 million businesses, created 370,000 jobs in these firms, and constituted around 13% of total public investment in the EU, reaching 51% for the less developed Member States.
2024 marks 20 years since the EU welcomed new Member States in its largest enlargement round to date. Over this period, the average GDP per head of the Member States who joined since then has increased from 52% to nearly 80% of the EU average. The gap with the rest of the EU has halved. The unemployment rate in these Member States has decreased from an average of 13% to 4%.